Tuesday, August 31, 2004
Copyright © Las Vegas Review-Journal

City staff to ask council to postpone Treasures hearing

Barbara Lewis, charged with soliciting prostitution at Treasures last year, leaves City Hall Monday after appearing in court. Photo by Clint Karlsen.

City staff will ask the Las Vegas City Council to postpone Wednesday's hearing on Treasures' liquor license to allow city auditors time to complete a review of records at the topless club.

Ali and Hassan Davari, who in addition to Treasures own six Houston- area clubs, had $2.17 million seized by Harris County officials in late May as officials in Texas probed whether they skirted federal cash-reporting requirements.

The state of Texas subsequently filed a civil lawsuit against the Davaris related to their banking activity.

Noting the unusual bank transactions under investigation in Texas occurred as the Davaris were building their Las Vegas club, Las Vegas officials asked for an audit of Treasures at the June 16 City Council meeting.

"Based upon the civil complaint (in Houston), we wanted the auditor to have an opportunity to examine their records as we requested at the last hearing," City Attorney Brad Jerbic said Monday.

The review won't be finished by Wednesday, prompting city staff to ask the hearing on the club's liquor license be delayed until Sept. 15.

Treasures' attorney Mark Fiorentino told city staff on Monday that he won't oppose postponement of the hearing.

Texas investigators allege the Davaris made hundreds of deposits and withdrawals on bank accounts in amounts slightly less than $10,000. The IRS requires transactions above $10,000 be reported.

If the council waits for the audit to be finished, it would add another subplot to a liquor license application that's already raised broad questions about regulation of the erotic dance industry.

At issue has been the club owners' now famous vow to surrender their liquor license without a fight if a Treasures dancer were convicted of sexual misconduct. That promise has placed greater importance on several soliciting prostitution charges working their way through Las Vegas Municipal Court.

One of three Treasures dancers charged with soliciting prostitution at the club last year, Barbara Lewis, appeared in court on Monday.

The dancer was working at the club Halloween night last year when she engaged Leon Desimone in conversation, not realizing he was an undercover police detective.

Over the course of two hours, Desimone tried to get Lewis to leave the club and have sex with him for $600, the officer testified at a previous hearing.

Lewis responded "cool" to the detective's suggestion that he pay her, they leave the bar, have sex and go to a nightclub. Desimone testified that response was the evidence used to arrest Lewis.

Lewis never left the club, but she was arrested after Desimone pulled out his wallet to give her the promised cash and they began to leave.

Lewis' attorney, Ross Goodman, argued Monday that because the sting went on for two hours and Lewis rebuffed four previous offers to leave the club during that time, police tactics amounted to entrapment.

"The officer was the first to suggest a sexual act," Goodman said. "He was the first to suggest paying for it."

But Deputy City Attorney Martin Orsinelli argued Lewis had showed a willingness to break the law through violating the erotic dance code during a lap dance Desimone purchased that night.

"She never said no," Orsinelli said.

Las Vegas Municipal Judge George Assad questioned Desimone's testimony because the police detective admitted he was drinking that night.

"There's no video, no audio tape, no corroborating testimony, and the officer had been drinking," the judge said.

Assad said he would rule on the case Sept. 7.